Momentum is growing across the board for American Supply Association members as they are reporting increasing growth and are finally getting back to 2008 revenue levels. May 2011 produced another strong overall 9.2 percent improvement in per day revenues as compared to the same month in 2010; up 14.2 percent as compared to 2009 and down a mere 1.8 percent as compared to 2008.
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Plumbing, heating and pipe, valve and fitting distributors are up 6.1 percent YTD and 5.9 percent on a rolling 12month basis. These revenue growths are balanced well based upon both geographic location and size of distributor. The only exception to this revenue diversity is the California market, which is lagging the other geographic areas on a rolling 12month basis. On a monthly and yeartodate basis, California is comparable.
The industrial PVF sector was particular strong during May, reporting an 18.7 percent in per day revenues, up 26.3 percent over 2009 and down a small 3.9 percent over 2008.
Continued optimistic feelings in the industry and ongoing concerns of both inflation and shortages have driven ASA members to one of the largest monthly inventory rebuilds in many years. This marks the eighth consecutive month of increases after 20 consecutive months of declining inventories. On a yearoveryear basis, inventory grew at a 9.6 percent rate in May vs. 2010; up 6.6 percent as compared to 2009 and down 3.7 percent as compared to 2008.
Days sales outstanding stands at 48.1 days at the end of May 2011. This is a reversal of the recent improvement trend, and is higher than 2010 by 1.0 day and still a 1.1 day improvement over 2009. And very importantly, distributors are overwhelmingly reporting an improved bottom line as compared to 2010.